Heidelberg’s subscription offering successfully in use by customers - Lensing Druck much more productive than planned

07-11-2018

Lensing Druck based in Dortmund-Kley was one of the first customers for the new digital subscription offering of Heidelberger Druckmaschinen AG (Heidelberg). In this pay-per-use model, Heidelberg provides its customers with all the components required for the successful operation of the print shop, such as the machine system, software, consumables for all offset machines, and service; the customers pay exclusively for the number of printed sheets.

Lensing Druck has set a course for growth with the digital transformation of the company and therefore opted for Heidelberg’s subscription offering. In addition, the overall efficiency at Lensing Druck should be further increased over the contract term of five years as a result of the optimized interaction of all the components. Lensing Druck has already been using a new Heidelberg Speedmaster XL 106 on a subscription basis for around four months. The agreement also includes the supply of consumables for a third-party machine still in use – billed based on the number of printed sheets.

Lensing Druck is now reaching its first conclusions: “After four months of experience with the subscription model, we can say that our decision was a good one! We have been able to significantly increase the overall efficiency of our machines even after this short time, and our production volume is already more than 20 % above the target contractually agreed with Heidelberg,” says Robert Dembinski, Managing Director at Lensing Druck. The print shop is much more efficient than in the past, particularly when it comes to processing shorter runs. “Our business is also seeing an increase in the number of jobs in combination with declining run lengths. Optimizing how we process short runs therefore has a major impact on profitability,” says Dembinski.

A key technology in the cooperation with Heidelberg, especially with regard to tracking performance data, turned out to be the Heidelberg Assistant, which provides both Lensing Druck and Heidelberg with a real-time overview of the current performance of the entire print shop. In regular coordination rounds, Heidelberg together with the customer monitors whether the performance is within the contractually agreed limits and immediately initiates suitable measures if this is not the case.

Both sides use the Heidelberg Assistant to access the print shop’s performance data during this process, and thus all decisions can be made on the basis of real-time data, which additionally underlines the importance of big data applications. Using the Heidelberg Assistant, Lensing Druck will shortly also be able to view the consumption as well as the stock of inventory of the required consumables and if necessary log directly into the Heidelberg eShop and, for example, order supplies of materials that Heidelberg does not permanently have available at the customer’s premises.

Heidelberg is still right on schedule with the implementation of the subscription offering. The company wants to have 30 contracts concluded with customers by the end of the current financial year, and around 100 contracts by the end of the following financial year. Heidelberg expects an average annual sales volume of around one million euros for each contract.

On request, customers can also conclude a subscription contract with Heidelberg for the consumables required to operate their business, which in the case of Lensing, for example, also includes the supply of consumables for third-party machines. The customer exclusively pays the price per printed sheet agreed with Heidelberg in this case also. Time-intensive negotiation with different trading companies is replaced by complete cost transparency.

With the Prinect Production Manager, Heidelberg has also offered a software subscription package for its Prinect workflow since the last drupa which is, in principle, suitable for print shops of any size in commercial and packaging printing. The Prinect Production Manager, of which over 100 systems are already installed worldwide, enables print shops to access all features of the Prinect production workflow without having to purchase individual licenses.

The software subscription business model provides a cost-effective solution and a simplified approach for seamless workflow automation and optimum productivity. Customers only pay for their use in this model also. The monthly fee comprises a basic fee with a total volume of produced TIFF square meters and an additional fee for the number of produced TIFF square meters over and above the basic value. All software updates and upgrades are included. This guarantees access to the latest version and the latest functionalities with hotline and remote support.

“Digital business models also belong to the future in the print media industry ", says Prof. Ulrich Hermann, Member of the Management Board and Chief Digital Officer at Heidelberg."With the goal of increasing the productivity and competitiveness of our customers, Heidelberg will develop relevant benchmarks and other benefit-oriented business models based on its exceptional database."